Gracechurch Street 55 London Ec3

GRACECHURCH STREET 55 LONDON EC3

CORE CITY FREEHOLD INVESTMENT

A reversionary freehold building at the very heart of the City

Investment Summary

55 Gracechurch Street is located in the core of the City of London

• Freehold.

• Core City of London location in close proximity to the Bank of England, Leadenhall Market and the Lloyd’s Building.

• 74,622 sq ft (6,932.6 sq m) of office, leisure and ancillary accommodation arranged over basement, lower ground, ground and six upper floors.

• Securely let to four tenants generating a current passing rent inclusive of vendor top-ups of £3,035,449 per annum, reflecting a below market rent of only £40.68 per sq ft overall.

• The Royal London Mutual Insurance Society Limited is the principal tenant, occupying the building as its headquarters and accounting for circa 61% of total income.

• Immediate opportunities to add value and improve the running yield.

• Offers in excess of £60 million are sought for our client’s freehold interest, subject to contract. A purchase at this level reflects a net initial yield of 4.73% and a low capital value of c.£805 per sq ft assuming full purchaser’s costs of 6.80%. 5

4 The Leadenhall Lloyd’s Building Building

Bank of The Royal 22 The Leadenhall England Exchange Bishopsgate Gherkin Market

Bank Cannon Street New Bank Station

Station Station Entrance 20 Fenchurch Tower of Street 33 Central London

Plantation Place

Monument 7 &

Station 6 LONDON - THE GLOBAL £2.45bn tech sector investment - over three times GATEWAY CITY more than the whole German market

London is a dominant global financial centre which also boasts a rich cultural offering with a variety of internationally recognised museums and top class restaurants. London is the world’s most visited global city.

A third of the world’s largest companies are headquartered in London 72 75%of the FTSE 100 call London home

Over 300 languages are spoken in the city, more than any other in the world

UNESCO world 4 heritage sites

position ahead of New York in the most recent Global Financial Centres Index (GFCI by Z/Yen Group) 75% No.1 of Fortune 500 Companies have an office in the Capital 43 UNIVERSITIES AND 435,000 STUDENTS

of the top 10 museums and galleries in 72 the world 75% Michelin-starred restaurants 3

Over 300 languages are spoken in the city, more than any other in the world CROSSRAIL, EUROPE’S LARGEST INFRASTRUCTURE PROJECT, IS OVER 85% COMPLETE

No.1 European

city for start-ups CONSISTENTLY DOMINATING GLOBAL CAPITAL FLOWS, ATTRACTING MORE CROSS-BORDER CAPITAL INTO REAL London’s time zone ESTATE THAN ANY OTHER CITY position allows trading with Asia, the Middle East and the Americas 9 &

8 ALDGATE EAST LIVERPOOL STREET

WHITECHAPEL

TURNMILL LUTON AIRPORT

THE ROYAL LONDON BARBICAN ST R LANE SPITALFIELDS HOSPITAL Location REET NEW ROAD MARKET

MOO

ALD’S ROADGRAY’S INN B CHARTERHOUSE STREET GARDENS FARRINGDON ROAD THEO A prime City core location in ALDE BRICK LAN

HATTON GARD COMME

R BARBICAN London’s financial & insurance FARRINGDON S G ATE STREE MOORGATE INSBU F RY LIVERPOOL STREET RCIAL STR E RED LION ST district GRAY’S INN RO WHITECHAPEL ROAD CIRCUS T LIVERPOOL STREET 55 Gracechurch Street is situatedEN in the heart of the City of EE RED LION T SQUARE London, the historic epicentre for trade and commerce in the RE

SOUTHAMPTON RO GARDENS capital. The property is within 400 metres of both the Bank of ET LONDON WALL EnglandA and Leadenhall Market, traversing the border of London’s ALDGATE EAST D COMMERCIAL ROAD globally recognised financial district and its renowned insurance SNOW HILL HOUND B quarter. HOLBORN A SI TE

A N SDITCH CANNON STRE G RG CHANCERY H HIGH HOLBORN The 0.38 acre freehold site occupies a prominent position on the O A

LANE L BEVIS MARKS GILTSPUR STREET east side of Gracechurch Street, aE key thoroughfare from outside L

ALDGATE

W N S

the City through EC3 to London ABridge. The property is located T REET NE R

L SHO E FARR GRESHAM STREET

W close to the intersection of GracechurchR Street, Fenchurch Street E

T SHADWELL GUILDHALL E WHETSTONE PARK MAN’S RO E AD ST T O

and Lombard Street, and is within 40 metres E ofLANE 20 Fenchurch ST EDWARD KING LEMAN STREET T ET ROAD

CENTRAL LOTHBURY AX RTINS LE-GRAND RTINS E INGDON STREET MA 30 ST HOLBORN Street (the ‘Walkie Talkie’). F LINCOLN’S INN FIELDS CRIMINAL ST MARY AXE ET W E COURT OLD BR MANSEL TR E P ALDGATE HIGH STREET S N RINCE’S LIE W A In addition to attracting some of the world’s leading ST MARY ST PAUL’S CHANCERY LAN THE LEADENHALL organisations, the micro-location offers an unrivalled retail BUILDING BANK OF ENGLAND S THREADNEEDLE STREET L STREET position within close reach of international retailers such as Gap CHEAPSIDE T MI BANK T and Marks & Spencer. High end restaurants, bars and boutiques N KI EE ORIE NGSWAY are also located nearby in Leadenhall Market and the Royal ONE NEW POULTRY ROYAL EXCHANGE CORNHILL OLD BAILEY LINCOLN’S INN FIELDSAL STREET Exchange. CHANGE LUDGATE HILL S PORTUG E FLEET STREET CAREY STREET Significant developments have been completed nearby in recent ST PAUL’S LLOYD’S OF CATHEDRAL LOMBARD STREET LONDON years. Local landmark towers include The Leadenhall Building, 20 WATLING STREET LEADENHALL S MARKET T PA Fenchurch Street and W.R. Berkley’sBOUV ERIE52 ST Lime Street which is due CITY THAMESLINK UL ’S GRACECHURCH STR CHURCHYARD QUEEN VICTORIA STREET CABLE STREET to be completed in 2019. These schemes have attracted some of FENCHURCH STREET LONDON SCHOOL STRAND DOCK STREET the world’s leading occupiers such as AON, RSA Group, Markel CANNON STREET NEW BANK STATION TOWER GATEWAY OF ECONOMICS FENCHURCH STREET DRURY LANE and Clydesdale Bank Plc. ENTRANCE MANSION HOUSE H NEW CHANGE C R 20 WY ROYAL MINT STREET LD EET FENCHURCH TOWER HILL A ARUNDE TUDOR STREET STREET THE HIGHWAY QUEEN VICTORIA STREET CANNON STREET EASTCHEAP L ROYAL MINT

STREET L STREET MONUMENT COURT INNER TEMPLE TOWER HIL GARDENS UPPER THAMES STREET

STRAND QUEEN VICTORIA VICTORIA EMBANKMENT

LOWER THAMES ST REET THOMAS MORE PLE PLACE TEMPLE SQUARE

LANCASTER PLACE M TOWER OF TE

LONDON RS BRIDGE RS ST KATHARINE’S DOCKS ORNAMENTAL STRAND ES

RIVER THAM CANAL BLACKFRIA

ALDGATE EAST LIVERPOOL STREET

WHITECHAPEL

TURNMILL LUTON AIRPORT

THE ROYAL LONDON BARBICAN ST R LANE SPITALFIELDS HOSPITAL REET MARKET NEW ROAD

MOO

ALD’S ROADGRAY’S INN B CHARTERHOUSE STREET GARDENS FARRINGDON ROAD THEO ALDE BRICK LAN

HATTON GARD COMME

R BARBICAN FARRINGDON S

G ATE STREE MOORGATE INSBU F RY LIVERPOOL STREET RCIAL STR E RED LION ST GRAY’S INN RO WHITECHAPEL ROAD CIRCUS T LIVERPOOL STREET EN EE RED LION T SQUARE RE

SOUTHAMPTON RO GARDENS ET LONDON WALL A ALDGATE EAST D COMMERCIAL ROAD

SNOW HILL HOUND HOLBORN B A

SI TE

A N SDITCH CANNON STRE G RG CHANCERY H HIGH HOLBORN O A

LANE L BEVIS MARK GILTSPUR STREET E L

ALDGATE

W N S

A T REET NE R

L SHO E

FARR GRESHAM STREET E S W R

T SHADWELL GUILDHALL E WHETSTONE PARK MAN’S RO E AD ST T O

E LANE ST EDWARD KING LEMAN STREET

T CENTRAL LOTHBURY ET ROAD RTINS LE-GRAND RTINS E INGDON STREET MA 30 ST HOLBORN F LINCOLN’S INN FIELDS CRIMINAL ST MARY AXE ET W E COURT OLD BR MANSEL TR E P ALDGATE HIGH STREET S N RINCE’S LIE W A ST PAUL’S ST MARY AX CHANCERY LAN THE LEADENHALL BUILDING BANK OF ENGLAND S THREADNEEDLE STREET L STREET T CHEAPSIDE MI BANK T N KI EE ORIE NGSWAY ONE NEW POULTRY ROYAL EXCHANGE CORNHILL OLD BAILEY LINCOLN’S INN FIELDSAL STREET CHANGE STR LUDGATE HILL S PORTUG E FLEET STREET ST PAUL’S LLOYD’S OF CAREY STREET LONDON CATHEDRAL WATLING STREET LOMBARD STREET LEADENHALL S MARKET T PA BOUVERIE ST CITY THAMESLINK UL ’ GRACECHURCH S CHU D QUEEN VICTORIA STREET CABLE STREET RCHYAR FENCHURCH STREET LONDON SCHOOL STRAND DOCK STREET CANNON STREET NEW BANK STATION TOWER GATEWAY OF ECONOMICS FENCHURCH STREET DRURY LANE ENTRANCE MANSION HOUSE 55 H NEW CHANGE C R 20 WY ROYAL MINT STREET LD EET FENCHURCH TOWER HILL A ARUNDE TUDOR STREET STREET THE HIGHWAY QUEEN VICTORIA STREET CANNON STREET EASTCHEAP L ROYAL MINT

STREET L STREET MONUMENT COURT INNER TEMPLE TOWER HIL GARDENS UPPER THAMES STREET

STRAND QUEEN VICTORIA VICTORIA EMBANKMENT

LOWER THAMES ST REET THOMAS MORE PLE PLACE TEMPLE SQUARE

LANCASTER PLACE M TOWER OF TE

LONDON RS BRIDGE RS ST KATHARINE’S DOCKS ORNAMENTAL STRAND ES

RIVER THAM CANAL BLACKFRIA 11

10 A key destination for global25 real

23 estate investors 22

For decades the City of London has been the focus for global real estate investors. The limited supply of freehold assets keeps both institutional and high net worth investors eager to acquire the best opportunities. Many assets in the vicinity of 55 Gracechurch Street are owned by some of the most discerning and demanding investors from around the world.

1 24

9 19 10 55

15 16

13 20 12

11 13

11 &

18 12 1 KGAL (2010)

60 Gracechurch Street

2 Chuang’s China (2016)

10 Fenchurch Street

3 Tenacity International (2017) TENACITY 23 70 Gracechurch Street 22

4 Credit Suisse (2017)

The Monument Building

5 Al Ain (2016)

Regis House

6 Shin Kong Life (2015)

40 Gracechurch Street 2

7 U City (2016)

33 Gracechurch Street 3

8 Al Ain (2017) One George Yard 1 24

9 Ho Bee Land (2017)

67 Lombard Street

10 KanAm Grund (2016) 7 68 Lombard Street

11 Nan Fung (2016) 21

108 Cannon Street

12 Renhe (2017) 8 110 Cannon Street

9 19 10 13 CIT (2016)

12 Arthur Street

14 Lion Group (2018)

24 Martin Lane

15 Wells Fargo (2018)

33 Central

16 Ella Valley Capital (2018) ELLA VALLEY CAPITAL 24 King William Street

17 TfL - New Bank Station Entrance 55 10 King William Street

18 ICBC (2010)

81 King William Street

Ivanhoé Cambridge (2015) 4 19 21 Lombard Street

20 Alpha Asset Management / Keppel Land (2015) 5 75 King William Street

21 Aviva / Northwood (2013) 6 20 Gracechurch Street

22 LKKHPG (2017) 15 20 Fenchurch Street 16

23 Moise Safra (2012)

Plantation Place

14 24 Brookfield (2012)

Leadenhall Court

13 20 12

17 11 18 Transport

Superb connectivity will be further improved with the completion of the Bank station upgrades in 2022

Bank and Monument Underground stations are used by more than 52 million passengers a year. The two stations form the third busiest interchange on the London Underground network, with demand doubling over the last ten years.

Transport for London has started work to substantially upgrade the capacity of Bank station by 40%. The £600 million modernisation will include a new station entrance on the 10 King William Steet site in the block which is bounded by Cannon Street, Abchurch Lane, King William Street and Nicholas Lane. The new entrance will be on Cannon Street, approximately 175 metres from 55 Gracechurch Street. 175m from new Cannon Street Bank station entrance

CGI of the new Bank station entrance on Cannon Street

CGI of the new Bank station entrance on Cannon Street passengers 52m a year 40% increase of Bank station capacity

Luton Stansted Airport Airport

Paddington Luton Stansted Airport Airport King’s Cross St Pancras Heathrow Airport Paddington Luton Stansted Airport Airport Stratford King’s Cross St Pancras Heathrow Paddington Airport Stratford Bond Street Moorgate King’s Cross St Pancras Liverpool Street Heathrow Airport Stratford Bond Street Moorgate Liverpool Street Oxford Circus Bank Currently: 320m New entrance: 175m Fenchurch Street Bond Street Moorgate 550m Liverpool Street Oxford Circus Bank Currently: 320m New entrance: 175m Fenchurch Street 550m Oxford Circus Bank Mansion House CannonCurrently: Street 320m Monument Tower Hill 620m New entrance:320m 175m 75mFenchurch Street 820m 550m

Mansion House Cannon Street Monument Tower Hill 620m 320m 75m 820m London Bridge Mansion House Cannon Street Monument Tower Hill 620m 320m 75m 820Canarym Wharf Waterloo London Bridge London City Airport Canary Wharf Waterloo Gatwick Airport London Bridge

CanaryLondon Wharf City Airport Waterloo Gatwick Airport Bakerloo National Rail Central Crossrail Circle London City Airport District Underground Gatwick Airport Hammersmith & City Bakerloo NationalDLR Rail CentraJubilel e CrossrailPier CircleMetropolitan DistrictNorthern Underground Bakerloo HammersmithPiccadilly & City DLNationalR Rail Central JubileVictorie a Crossrail Circle Pier MetropolitanWaterloo & City District Underground Northern Hammersmith & City Piccadilly DLR Jubilee Victoria Pier WaterlooMetropolitan & City WithNorthern excellent transport links, including six Piccadilly Victoria stationsWaterloo & City within a 10 minute walk, the property has easy access to the rest of Central London and the commuter suburbs beyond 15

14 Crossrail

The most significant addition to London’s transport capacity since World War II

Crossrail will, for the first time, deliver a direct connection between all of London’s main employment centres, linking Heathrow with Paddington, the West End, the City and Canary Wharf. In peak times a train will run every two and a half minutes in each direction. Two new ticket halls are being constructed at Liverpool Street and Moorgate and will be connected by underground platforms. 30% increase in number The railway will have an estimated 200 million travellers each year and is expected of commuters within 45 to reduce London journey times by up to 70% as a result. The new Crossrail network will support major regeneration across London and add an estimated mins of Central London £42bn to the UK economy.

CGI of new Liverpool Street Station CGI of new Liverpool Street Station entrance

10mins to Liverpool Street Crossrail station

CGI of new Liverpool Street Station

Heathrow Paddington Bond Street Tottenham CourtFarringdon Road Liverpool StreetWhitechapel Canary Wharf Stratford

35 mins 10 mins 7 mins 4 mins 2 mins 2 mins 6 mins 8 mins

Stratford 17

16 The Building

55 Gracechurch Street was developed by Land Securities to an institutional standard and provides 74,622 sq ft of well specified office, leisure and ancillary accommodation arranged over basement, lower ground, ground and six upper floors.

The property provides open plan floorplates which range in size from circa 5,000 sq ft to 11,000 sq ft. The floors are regularly configured and benefit from excellent levels of natural light.

The elevation fronting Gracechurch Street is finished with Portland stone and granite. The side elevations are finished with metal and glass curtain walling. Access to the property is via a large contemporary reception area which leads to four thirteen-person passenger lifts. A rear entrance also provides separate access onto Brabant Court and Philpot Lane. There is a gym and a car park in the basement. These are accessed via St. Benet’s Place and Talbot Court respectively.

18 & 19

20 & 21 Specification

55 Gracechurch Street has recently undergone a significant programme of refurbishment to upgrade the building’s plant and machinery. This includes works to the air conditioning systems and replacement of all lifts within the building.

> VAV/ VRF air conditioning systems;

> Metal tiled suspended ceilings;

> Integrated LG7 compliant lighting;

> 150mm raised floors;

> Minimum 2.60 metre finished floor to ceiling height across all floors;

> Male, female and disabled WCs on all floors;

> Refurbished reception;

> Four x 13 person passenger lifts;

> Goods lift serving all floors;

> Vehicle lift serving ground and basement levels;

> Secure car parking and bicycle storage;

> Tenant shower and changing facilities;

> Roof terrace on the 6th floor.

5th floor - recently let to Royal London

Floor Areas

A measured survey of the property has been undertaken by Plowman Craven in accordance with the guidelines as described in the Sixth Edition of the Code of Measuring Practice, published by the Royal Institution of Chartered Surveyors.

Floor Use Area Area (sq ft) (sq m)

6th Office 5,063 470.4 5th Office 7,855 729.8 4th Office 8,830 820.3 3rd Office 11,202 1,040.7 2nd Office 11,034 1,025.1 1st Office 11,048 1,026.4 Ground Office 6,783 630.2 Ground Reception 1,262 117.2 Ground Storage 167 15.5 Lower Ground Gymnasium 10,656 990.0 Basement Storage 519 48.2 Basement BMO 203 18.9 Total 74,622 6,932.6

1 car parking space is located in Talbot Court together with 4 car spaces and dedicated storage for bikes at basement level. 23

22 Office Core Storage Floor Plans Reception Terrace

BRABANT COURT ST BENET’S PLACE

REET

LIFT LIFT

LIFT LIFT LIFT

GRACECHURCH ST CAR LIFT STORAGE WC WC

TALBOT COURT

Ground Floor 8,317 sq ft

WC WC

LIFT LIFT

LIFT LIFT LIFT

First Floor 11,048 sq ft

Office N Core Storage Reception Not to scale. Terrace For indicative purposes only.

WC WC

LIFT LIFT

LIFT LIFT LIFT OFFICES

Ground Floor Fifth Floor 8,317 sq ft 7,855 sq ft

WC WC

LIFT LIFT

LIFT LIFT LIFT

TERRACE

First Floor Sixth Floor 11,048 sq ft 5,063 sq ft 25

24 Large Freehold Site

Site Area Planning

The property occupies a large freehold site extending 55 Gracechurch Street is situated within the to approximately 0.38 acres (0.15 ha). jurisdiction of the Corporation of London, which is the local authority for the City of London.

The property is not listed. However, a set of attractive iron gates to the rear of the property fronting Brabant Tenure Court are Grade II listed.

The property is held freehold under title number The property is located on the border of the Eastcheap NGL 435622. Conservation Area with part of the freehold title falling within it.

55 Gracechurch Street sits in close proximity to the Eastern Tower Cluster of the City.

1 8 e

n 77 48 H 52 a 60

9 M ar 61 56 k 5 e 7 t 55 53 54

Lo mba N rd Str eet

31 38 25 26 81 24 32

37 39

a i Fenchu s rch Street A

Gracechurch Street

15 48

- 5 11 13 9 3 1

East Cheap 2b

55 l l i

H t e e 10 r t 8 2a 2a 4 6

h S s i F e

L n

o a

1a h L t

p L l

a o t 1 n

o Plan not to scale. For identification purposes only. This plan is basede B upon the Ordnance Survey Map with the sanction of the controller 31

of H.M. Stationery Office. CrownSai Copyright reserved. nt Georg es Lane 41 10 9

7 6

10 26 & 27 Income

Low overall passing rent of Royal London occupy the £40.68 per sq ft building as their Headquarters

55 Gracechurch Street is let to an enviable list of tenants from the insurance, leisure and professional 5% industries including Royal London, Shepherd Compello 9% Fitness First and Fitness First. Shepherd Compello The property is multi-let to three office tenants and one leisure tenant (by way of eight leases). The newly refurbished 5th floor has recently been let to Royal London at a rent of £59.00 per sq ft.

The weighted average unexpired lease term is circa 4.3 years to expiries. Income by Total income, assuming a vendor top-up in respect of 25% Tenant the vacant car parking and storage, is £3,035,448.50 per Lee Hecht annum equating to a low overall rent of only £40.68 per Harrison sq ft. This compares favourably to prime City of London Penna rental levels currently in excess of £65 per sq ft. 61% Royal London

6th Floor

5th Floor

4th Floor

3rd Floor

2nd Floor

1st Floor

Ground Floor

Lower Ground Rental Performance rent. • • • running yield. to add opportunities value andimprove the of secure incometogether with more immediate combination providesThe property anattractive an opportunity for an uplift to anew for headline anuplift an opportunity lease expires floor inThe sixth 2021 providing running term.yield inthenear offering to improve theopportunity the to46% of review theincomeissubject reversionary basis. onaheadline 55 Gracechurch Street isapproximately 15%

28 & 29 Tenancy Schedule

Tenant Floor Use Area Area Lease Rent Lease Passing Passing 1954 Comments (sq ft) (sq m) Start Review Expiry Rent (psf) Rent (pa) Act

Shepherd Compello Limited 6th Office 5,063 470.4 14/09/2011 - 13/09/2021 £51.80 £262,288 Outside Rent settled at September 2016 review. Part sublet to Seer Group Ltd. Service charge cap increases each year by RPI. Cap excludes Landlord’s Fuel Expenses.

The Royal London Mutual 5th Office 7,855 729.8 15/05/2018 - 30/04/2023 £59.00 £463,445 Outside Initial rent free period of 10 months to be topped up by vendor. Insurance Society Limited

The Royal London Mutual 4th Office 8,830 820.3 20/05/2013 01/05/2018 30/04/2023 £43.46 £383,757 Inside Outstanding rent review. Service charge cap increases each year Insurance Society Limited by RPI. Cap excludes Landlord’s Fuel Expenses.

The Royal London Mutual 3rd Office 11,202 1,040.7 24/06/2016 25/12/2017 30/04/2023 £43.57 £488,026.50 Inside Outstanding rent review. Service charge cap increases each year Insurance Society Limited by RPI. Cap excludes Landlord’s Fuel Expenses.

Basement Parking 1 space 1 space ------

The Royal London Mutual 2nd Office 11,034 1,025.1 24/06/2016 25/12/2017 30/04/2023 £45.37 £516,432 Inside Outstanding rent review. Service charge cap increases each year Insurance Society Limited by RPI. Cap excludes Landlord’s Fuel Expenses.

Basement Storage 348 32.3 ------

Penna Consulting Limited 1st Office 11,048 1,026.4 25/12/2013 - 23/06/2021 £41.57 £459,300 Outside Lease currently being assigned to Lee Hecht Harrison Penna Limited (guaranteed by Olsten (UK) Holdings Ltd). Service charge cap increases each year by CPI. Cap includes Landlord’s Fuel Expenses.

Penna Consulting Limited Ground Office 6,783 630.2 23/02/2015 23/02/2020 23/06/2021 £44.26 £307,635 Outside Lease currently being assigned to Lee Hecht Harrison Penna Limited (guaranteed by Olsten (UK) Holdings Ltd). Service charge cap increases each year by RPI. Cap excludes Landlord’s Fuel Expenses.

Ground Storage 167 15.5 ------

Ground Reception 1,262 117.2 ------

Vacant Ground Parking 1 space 1 space - - - - £3,000 - Vendor to provide an 18 month rent, rates and service charge (Talbot Court) guarantee.

Fitness First (Curzons) Lower Ground Gymnasium 10,656 990.0 25/03/2017 - 24/03/2022 £13.14 £140,000 Inside - Limited & Part Ground

Vacant Basement Parking 3 spaces 3 spaces - - - - £9,000 - Vendor to provide an 18 month rent, rates and service charge guarantee.

Vacant Basement Storage 171 15.9 - - - £15.00 £2,565 - Vendor to provide an 18 month rent, rates and service charge guarantee.

Building Management Office Basement BMA 203 18.9 ------

London Electricity PLC Part Basement Sub-station ------License Agreement.

Total 74,622 6,932.7 £40.68 £3,035,448.50

Tenant Floor Use Area Area Lease Rent Lease Passing Passing 1954 Comments (sq ft) (sq m) Start Review Expiry Rent (psf) Rent (pa) Act

The Royal London Mutual 5th Office 7,855 729.8 15/05/2018 - 30/04/2023 £59.00 £463,445 Outside Initial rent free period of 10 months to be topped up by vendor. Insurance Society Limited

Basement Parking 1 space 1 space ------

Basement Storage 348 32.3 ------

Ground Storage 167 15.5 ------

Ground Reception 1,262 117.2 ------

Vacant Ground Parking 1 space 1 space - - - - £3,000 - Vendor to provide an 18 month rent, rates and service charge (Talbot Court) guarantee.

Fitness First (Curzons) Lower Ground Gymnasium 10,656 990.0 25/03/2017 - 24/03/2022 £13.14 £140,000 Inside - Limited & Part Ground

Vacant Basement Parking 3 spaces 3 spaces - - - - £9,000 - Vendor to provide an 18 month rent, rates and service charge guarantee.

Vacant Basement Storage 171 15.9 - - - £15.00 £2,565 - Vendor to provide an 18 month rent, rates and service charge guarantee.

Building Management Office Basement BMA 203 18.9 ------

London Electricity PLC Part Basement Sub-station ------License Agreement.

Total 74,622 6,932.7 £40.68 £3,035,448.50 31 & 30 Covenants Royal London is the largest mutual insurer in the United Kingdom, with funds under management of over £100 billion

The Royal London Mutual Insurance Society Limited

61% of total income Mutual organisations such as Royal London are owned Royal London Mutual Insurance Society Limited forms by their members so have no shareholders to pay. This part of the Royal London Group, the UK’s largest safeguards the distribution of profits which are shared mutual life and pensions company with £106 billion of to members or reinvested to provide greater returns and total assets under management. service. The 2016 profit share distributed to the one million members of Royal London totalled £114 million, The organisation, headquartered at 55 Gracechurch an increase of 63% from the previous year. Street, was founded during 1861 in a London coffee shop. Since then, Royal London has grown to become one of Other subsidiaries within the group include Royal the country’s most trusted providers of life insurance and Liver Assurance, Scottish Life, Royal London Asset investment products. Management and Caledonian Life.

Record sales levels and increased profits were generated Further information can be obtained from the company during 2016. Pre-tax profits rose 16% from 2015 to reach website: www.royallondon.com £282 million and the Present Value of New Business Premiums increased by 28% to £8,686 million. Total sales of personal pensions and drawdown rose 17% from 2015 A levels to £3.8 billion. A2 Royal London won the Outstanding Achievement award at the 27th Financial Adviser Service Awards in 2017 and 5A1 ‘company of the year’ in 2016. The organisation’s Pension and Investment services were recognised and deemed to have delivered five-star service throughout the previous 12 months.

Lee Hecht Harrison Penna Limited, guaranteed by Olsten (UK) Holdings Limited*

25% of total income

Lee Hecht Harrison Penna Limited is a global firm specialising in career transition, leadership development and workplace transformation. The organisation recorded a turnover of £23 million in 2016, up 132% from 2015 levels. The volume of total assets also rose during 2016 by 127% to reach £35 million.

Olsten (UK) Holdings Limited is a wholly owned indirect subsidiary of Adecco Group AG and reported a pre-tax profit of £17.8 million in 2016.

Dun & Bradstreet - 5A1 (Olsten (UK) Holdings Limited)

Further information can be obtained from the company website: www.lhh.com

* After completion of lease assignment from Penna Consulting Limited

Shepherd Compello Limited Fitness First (Curzons) Limited

9% of total income 5% of total income

Shepherd Compello Limited specialise in automobile, Fitness First is the largest privately owned health club machinery and heavy equipment insurance. Shepherd group in the world, consisting of more than 360 clubs Compello increased turnover during 2016/17 by 58% to capturing over 900,000 members in 16 countries. The reach almost £10 million. Profits before taxes have company recorded a turnover in 2017 of £101 million, an doubled from 2015 levels. increase of 35% from the previous year.

Dun & Bradstreet - A1 Dun & Bradstreet - N2

Further information can be obtained from the company Further information can be obtained from the company website: www.shepherdcompello.com website: www.dwfitnessfirst.com 33 &

32 Opportunities to Add Value

55 Gracechurch Street benefits from numerous asset management opportunities in the short, medium and long term, allowing prospective purchasers the potential to enhance returns. These include:

> Settle outstanding rent reviews on the > Potential restructuring of the occupational second, third and fourth floor leases. leases with Penna and Royal London who Royal London are currently paying a low are long term occupiers of the building. passing rent of £45.37, £43.57 and £43.46 per sq ft respectively. The rent > Longer term opportunity to redevelop the review on the sixth floor was recently site which currently sits in close proximity to settled at £51.80 per sq ft. the Eastern Tower Cluster of the City.

Capital Allowances VAT

Capital Allowances may be available. The property is elected for VAT.

EPC Data Room

An Energy Performance Certificate (EPC) Please contact the vendor’s agent, Cushman & is available on request. The building has Wakefield, for a user name and password to access a D rating of 98. the data room.

Proposal

Our client is seeking offers in excess of £60,000,000, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of4.73% (assuming full purchaser’s costs) and a low capital value of c.£805 per sq ft.

Contacts

If you would like the opportunity to inspect the property, or if you require any further information, then please contact:

Martin Lay David Hookey James Ball

T: 020 3296 2021 T: 020 3296 2112 T: 020 3296 4462 E: [email protected] E: [email protected] E: [email protected]

Important Notice Subject to Contract. May 2018. Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. Designed and produced by The Looking Glass Design www.tlgd.co.uk 35